Black Box Corporation Reports Third Quarter Fiscal 2003 Results; GAAP Profit and Cash Flow Remain Strong; Sequential Revenue Seasonally Down.Business Editors PITTSBURGH--(BUSINESS WIRE)--Jan. 14, 2003 Black Box Corporation (Nasdaq:BBOX) today announced for the third quarter ended December December: see month. 29, 2002, reported earnings per share of 73 cents compared to 81 cents last year and 74 cents in 2Q03. Corresponding reported net income for the quarter was $14.8 million or 9.7% of revenues, compared to $16.9 million or 9.4% of revenues last year and $15.0 million or 9.2% of revenues in 2Q03. Total revenues for the quarter were $153 million, down 15% from $179 million last year and down 6% sequentially se·quen·tial adj. 1. Forming or characterized by a sequence, as of units or musical notes. 2. Sequent. se·quen from 2Q03's $163 million. Total revenues on a same-office basis were down 17% compared to last year and down 6% sequentially. Phone Service revenues were $63 million, comparable to 2Q03's $64 million. On-Site on-site adj. Done or located at the site, as of a particular activity: on-site monitoring of a production run; an on-site film shoot. Service revenues were $90 million, down 8% from 2Q03's $98 million. Third quarter free cash flow was $28 million compared to $29 million last year and $19 million in 2Q03. Free cash flow is calculated as cash provided by operating activities less capital expenditures, plus proceeds from option exercises, plus or minus foreign currency translation adjustments. The third quarter's free cash flow of $28 million was used towards: Black Box stock repurchases Stock repurchase A firm's repurchase of outstanding shares of its common stock. of $17 million; debt reduction of $10 million; and an increase in cash on hand of $1 million. Total operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: for the third quarter was 15.1%, compared to 15.8% last year and 15.2% in 2Q03. Operating margin for Phone Services was 20.1% compared to 19.4% last year and 20.9% in 2Q03. Operating margin for On-Site Services was 12.0% compared to 13.6% last year and 11.8% in 2Q03. Earnings per share reported for the nine months ended December 29, 2002 were $2.17 compared to $2.36 for the same period last year, down 8%. Corresponding reported net income was $44.5 million or 9.5% of revenues, compared to $49.1 million or 8.4% of revenues for the same period last year, down 9%. Total revenues for the nine months were $470 million compared to $583 million for the same period last year, down 19%. Free cash flow for the nine months was $71 million, up 28% compared to $56 million for the same period last year. This free cash flow was used towards: Black Box stock repurchases of $38 million; debt reduction of $26 million; and M&A activity of $7 million. Commenting on the third quarter Fiscal 2003 results, Fred (Friendly Rollabout Engineered for Doctors) A mobile medical conferencing unit. See videoconferencing. 1. FRED - Robert Carr. Language used by Framework, Ashton-Tate. 2. C. Young, Chief Executive Officer, said, "As expected, sequential One after the other in some consecutive order such as by name or number. revenues were down primarily due to traditional seasonality. However, with Black Box-like cost management, we produced strong profits and free cash flow from both an absolute dollar and ratio basis. "Armed with our continued operational and financial strengths, we remain focused on selective markets to drive significant long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. growth. The trick here is not to forget to play good defense along the way." Mr. Young went on to say, "Tomorrow, January January: see month. 15, Black Box will pay its first quarterly cash dividend. We are proud to be able to deliver this new program targeted at enhancing strategic shareholder value." The Company will conduct a conference call beginning at 10:45 a.m. Eastern Time today, January 14, 2003. Fred Young For the Native American physicist of the same name, see . Fred Matthews Young (died December 1993) was a Canadian politician, ordained minister and long time organizer for the Co-operative Commonwealth Federation (CCF). , Chief Executive Officer, will host the call. To participate in the call, please dial (612) 326-1003 approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 15 minutes prior to the starting time Noun 1. starting time - the time at which something is supposed to begin; "they got an early start"; "she knew from the get-go that he was the man for her" commencement, get-go, offset, outset, showtime, start, kickoff, beginning, first and ask to be connected to the Black Box Earnings Call. A replay of the conference call will be available for one week after the teleconference by dialing (320) 365-3844 and using access code 655265. Black Box is the world's largest technical services company dedicated to designing, building and maintaining today's complicated network infrastructure systems. Black Box services clients through 117 offices in 132 countries throughout the world.
BLACK BOX CORPORATION
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(Unaudited)
December 29, March 31,
ASSETS 2002 2002
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Current assets:
Cash and cash equivalents $13,447 $13,423
Trade accounts receivable, net 110,577 115,969
Inventories, net 44,991 46,081
Costs and estimated earnings in excess of
billings on uncompleted contracts 20,431 24,015
Other current assets 17,875 19,959
----------------------
Total current assets 207,321 219,447
Property, plant and equipment, net 36,994 41,063
Intangibles, net 397,675 387,286
Other assets 3,113 2,991
----------------------
Total assets $645,103 $650,787
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current debt $1,761 $3,189
Accounts payable 31,122 34,279
Billings in excess of costs and estimated
earnings on uncompleted contracts 4,097 4,235
Accrued expenses 32,625 31,125
Accrued taxes 3,967 3,155
----------------------
Total current liabilities 73,572 75,983
----------------------
Long-term debt 51,469 75,497
Other liabilities 7,365 9,209
Stockholders' equity:
Common stock 23 22
Additional paid-in capital 294,357 287,714
Retained earnings 355,790 312,288
Treasury stock, at cost (138,208)(100,355)
Accumulated other comprehensive loss 735 (9,571)
----------------------
Total stockholders' equity 512,697 490,098
----------------------
Total liabilities and stockholders' equity $645,103 $650,787
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BLACK BOX CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
Quarter Ended
December 29
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2003 2002
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Revenues $153,062 $179,241
Cost of sales 92,423 108,397
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Gross profit 60,639 70,844
Selling, general and administrative expenses 37,471 42,604
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Operating income before amortization 23,168 28,240
Intangibles amortization 96 82
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Operating income 23,072 28,158
Interest expense, net 671 1,382
Other (income)/expenses, net 44 2
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Income before income taxes 22,357 26,774
Provision for income taxes 7,580 9,905
---------- ---------
Net income $14,777 $16,869
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Basic earnings per common share $0.75 $0.84
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Diluted earnings per common share $0.73 $0.81
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Weighted average common shares 19,596 20,007
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Weighted average common and common
equivalent shares outstanding 20,225 20,955
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